State of Connecticut passes budget law without devastating taxes to general aviation

May 4, 2011 at 1:40 pm | Posted in Aviation Law Current Event | 1 Comment

by Sara M. Langston with the blog faculty

Source: AOPA

The Connecticut legislature has passed a $40.1 billion, two-year state budget package that does not include two tax proposals that were seen devastating the state’s aviation industry.

The budget package, expected to be signed soon by Gov. Dannel P. Malloy, dropped a proposed personal property tax on aircraft. It also passed without eliminating a sales tax exemption on labor performed for aircraft maintenance.

The budget passed the Senate 19-17 in the wee hours May 4, after clearing the House May 3 on an 83-67 vote that capped 10 hours of debate.

As AOPA reported March 2, the personal property tax—2 percent on the first 70 percent of an aircraft’s assessed value each year—combined with Connecticut’s existing registration fees, would have created extremely high costs for basing aircraft in the state, and could have led to widespread relocations of aircraft across state lines. [Full story]